The Residential Landlords Association (RLA) is welcoming
planned changes to the Universal
Credit system.
Responding to reports that the Work and Pensions Secretary, Amber
Rudd MP, will announce reforms to Universal Credit today, Chris Town, the Vice
Chair of the RLA, has spoken out in support.
The plans include a new online system for private landlords
to receive rents paid directly to them.
Town says: “Our most recent research has shown
that 61% of landlords with tenants on Universal Credit have seen them go into
rent arrears, up from 27% in 2016.
“Improving, and speeding up, the process by which
payments can be made directly to the landlord has been a central part of the
RLA’s campaign on Universal Credit. Anything that helps this will give
landlords much greater confidence in the system and ensure tenants have greater
security in the knowledge that their rent payments will be met.”
With further reports that Rudd will announce that the current benefits freeze will not continue beyond next year, Town adds: “Independent research commissioned by the RLA has recently warned that the freeze in housing benefit rates has been a key driver of homelessness from the private rented sector.
“Unfreezing them will enable benefits to keep up with the reality of market rents.”
These findings are
based on an RLA survey that was conducted last year amongst 2,234 landlords.
We look forward to
seeing whether these new planned changes will improve some of the issues that
both landlords and tenants have faced at the hands of Universal Credit over the
past few years.
Stay tuned at
LandlordNews.co.uk for the latest stories from across the lettings and property
sectors: https://www.landlordnews.co.uk
The
Tenancy Deposit Scheme (TDS) has become the first of the three
Government-approved tenancy deposit protection schemes to appoint a new
external, independent complaints reviewer.
With 20 years’ experience in adjudication and dispute
resolution, Margaret Doyle has taken up the new role.
Doyle is a Visiting Research Fellow with the UK
Administrative Justice Institute at the University of Essex.
She has also served as a non-executive director of several
ombudsman schemes, and is currently an independent member of the Ombudsman
Association’s Validation Committee.
Doyle is also the independent complaints moderator for the
British Acupuncture Council and formerly served as an independent complaints
reviewer for IDRS Ltd and Ombudsman Services Ltd.
In addition, she is a consultant trainer on the Queen
Margaret University Certificate in Ombudsman and Complaint Handling Practice
course.
Doyle says: “Having
an independent and impartial outside reviewer is a key process for
demonstrating robust arrangements exist for ensuring that customer complaints
are dealt with well, and that complainants have the opportunity for review by
someone outside of TDS.
“It is
also designed to help TDS learn lessons from complaints and to help improve
service provision.”
Doyle’s
appointment was introduced to bolster the scheme’s transparency to members and
the wider private rental sector.
The role
of the independent complaints reviewer will be to look at the way the TDS has
investigated complaints about its service, in order to ensure that the process
has been fair and transparent, and that the issues raised have been properly
considered.
In its
2018 Annual Review, the TDS reported that less than 1% of its tenancy deposits
ended in a dispute – a total of 14,430.
Of these 14,430
disputes, just 2.65% resulted in a complaint being made about the adjudication
decision or the service received.
The
average number of complaints received in 2018 was 32 per month, which was split
fairly evenly between tenants (36%), letting agents (23%) and landlords (41%).
Steve
Harriott, the Chief Executive of the TDS, says: “We take any complaints about
our service very seriously and strive for the highest standards of complaints
handling practice. If a complainant remains unhappy about TDS’s response to
their formal complaint about an adjudication decision or other aspect of TDS’s
customer service, they can escalate it to the independent complaints reviewer.
“This
role does not make Margaret a TDS staff member, but someone who is appointed by
the TDS board to take an independent view of complaints and report annually to
the board on their work.”
He adds: “As
the only not-for-profit deposit protection scheme operating in England and
Wales, TDS is committed to a programme of continuous investment in our systems,
processes, people and service. Margaret’s appointment is part of that ongoing
strategy and we are proud to have her on board.”
The majority of students in the UK are satisfied with their
landlords, according to the latest National Student Index from property app BubbleStudent.
The survey dispels the common belief that students feel
taken advantage of by those that they are renting from, finding that they’re
generally happy with their living conditions and the services offered by their
landlords.
A conclusive 63% of students surveyed said that they were
more than satisfied with their living conditions, with over half of those
believing that they were getting good value for money.
A small number (7.5%) were largely dissatisfied with their
landlords’ communication and general behaviour, disproving the widely held
notion that student-landlord relationships are strained.
Student properties can provide lucrative opportunities for
buy-to-let investors, as, despite the public perception, students are typically
reliable renters, with access to a steady stream of income through loans and
grants.
The majority of student tenants will also be supported by a
parent guarantor, which minimises the risk of defaulted payments, while the
six-month lead time on contracts helps to reduce void periods.
The UK has close to two million full-time students, almost
half of which are currently renting from private landlords. The removal of the
university admissions cap in 2015 has seen record numbers of students take up
places at university, so, for investors, students represent a guaranteed
market, regardless of economic fluctuations.
For students, sourcing the right property can be a
challenge. As often first time renters, students often struggle with the
processes involved in finding and securing accommodation, and the findings from
the National Student Index highlight the value that students place on good
landlord relations when it comes to selecting a property.
Felix
Henderson, the CEO and Founder of BubbleStudent, says: “There are many misconceptions about the relationship
between student tenants and landlords, however, our research has revealed that
the majority of students are more than satisfied with general landlord
behaviour and the standard of their accommodation, representing a real shift in
the dynamic from previous years.
“This change is,
in part, due to an increasing awareness of just how lucrative the student
market can be, along with improvements to the way these relationships are
facilitated and managed. We use an app-based service to match students with
properties, book viewings, secure contracts and help students make rental payments.
This virtual proximity has gone a long way towards helping to remove some of
the barriers and pain points for both students and landlords alike, resulting
in improved satisfaction across the field.”
Almost a third of homeowners and tenants want homes of the
future to be more eco-friendly, according to a survey conducted by Eurocell, a
manufacturer, distributor and recycler of PVCu windows, doors, conservatories
and roofline systems.
Eurocell’s The Future
Home Report draws on the findings of a survey of 1,000 25-40-year-olds that
either own or rent their homes, regarding design and build considerations for
homes of the future.
When asked about the most appealing design trends that
they’d want in their homes, 29% of respondents identified an eco-friendly
property, while 24% looked for open-plan living. Floor-to-ceiling windows and a
minimalist look came in joint third, at 23%.
When asked further about their attitudes towards
eco-friendly building and design, 49% of respondents said that they would be
more likely to buy or rent an eco-conscious home. However, despite this
interest, only 24% said that they would be willing to pay more money when
buying or renting a property with eco features.
Overall, 46% of respondents said that they would be willing
to pay a little bit more in rent or price if a property incorporated their
favoured design trends. Additionally, 10% said that they would be prepared to
pay significantly more.
When asked which top three factors contribute to them
feeling good in their own homes, respondents identified the amount of natural
light (48%), low noise levels (39%), and feeling safe and secure (37%) as the
most important. These were closely followed by access to outdoor space (36%),
and the design and layout of the home (35%).
Survey Reveals the Homes of the Future that Owners and Tenants Want
The report also includes expert input from architects and property developers. It reveals insight into the homes of the future that people hope to live in and current trends in the residential market, as well as identifying five trends that are currently defining the future design of homes:
A more advanced private rental sector model
Private rental sector buildings are likely to develop over
time to be operated more like clubs, where tenants will have access to
facilities across developers’ estates.
This model is certainly interesting in the higher-value private rental sector, with developers in bigger cities starting to make initial inroads into this market.
2. Regeneration
Regeneration of places is playing a huge role in housebuilding at present. Public and private sector collaboration is seen to be driving this trend. For example, homes being built near new schools to meet an increase in demand for housing around these areas, or homes being built above public hospitals and gyms to utilise the space.
3. Creating adaptable living spaces
There is increasing interest and demand for adaptable living spaces that cater for the short-term flexibility that people need. For instance, turning storage space into a bedroom for a weekend, or using partitions to split rooms.
4. Inner versus outer city living
An emerging trend is the difference between rural design,
which tends to be more restricted, and city centre living, which is usually
more innovative.
As more and more people start their lives in the city and then move out of the city (taking their preferred design trends with them), it is anticipated that this will eventually evolve what developments in more rural locations look like.
5. An increase in modular building
The reputational facelift that modular building has
undergone in the past is leading to growth in the sector, with the technique
often being cited as a more sustainable way of building, due to the use of a
controlled environment and waste reduction.
Chris Coxon, the Head of Marketing at Eurocell, comments on
the report: “As the UK is currently
in the middle of a housing crisis and is seeking to build 300,000 homes a year for the next decade, we wanted to gain
insight into the homes that owners and renters want to live in, to provide the
construction sector with a resource that will help them shape homes that people
desire.
“The Future Home Report incorporates what homeowners hope to see,
with the insight of a team of experts, to provide a balanced whitepaper that
can help influence how future homes are designed and built.”
What are you hoping for
from the homes of the future?
ARLA Propertymark (the Association of Residential Letting Agents) is predicting a stormy 2019 for tenants, following the release of its latest Private Rented Sector Report, covering November.
Rent prices
The number of private tenants experiencing rent price rises fell for the third consecutive month in November, with 21% of ARLA Propertymark member letting agents reporting that landlords put their rents up in the month. This is down from 24% in October and 31% in September.
However, on a year-on-year basis, the amount of tenants experiencing rent increases is up from just 16% in November 2017.
Rental supply
The supply of properties available to let fell to an average of 183 per member branch in November, from 198 in the previous month.
This is the lowest level seen since April this year, when supply stood at an average of 179 properties, and is down by 4% on November 2017.
Tenant demand
Demand from prospective tenants was also down in November, with the number of home hunters registered per member letting agent branch dropping to an average of 55, compared to 71 in October.
Having assessed these statistics, the Chief Executive of ARLA Propertymark, David Cox, is predicting a stormy 2019 for tenants.
He says: “It looks like tenants are starting to take control, with the number of landlords hiking rents falling for the third month in a row. However, as we look ahead to 2019, things don’t look as positive for tenants. Our members expect more landlords to be driven out of the market by rising costs, which will increase competition and push up rent costs. If we want to secure market stability in the New Year, we need to increase stock, and making the market more attractive for buy-to-let investors is the only way this can be done.”
Do you believe that the end of this year is the calm before the storm for tenants?
Any homeowner, landlord or tenant will know the displeasure that finding mould in a property can cause. But, did you know how mould can cause wealth erosion and disputes? The Association of Independent Inventory Clerks (AIIC) has issued a warning.
It is known that property investments can go up or down in value, but, whether you are an accidental or buy-to-let landlord, or a seller, looking after your property will pay dividends.
According to a recent study, 60% of British property buyers would leave a viewing if the home had obvious damp patches or mould. Other research shows that, if there is mould in a property, it will take longer to let.
Danny Zane, the Chairman of the AIIC and Managing Director of My Property Inventories, says: “Properties that have seen mould growth and have been poorly attended to take longer to rent. Our members inform us that tenants who move into such properties view the property as unclean and request a full professional clean, even when a professional clean had already taken place. A full clean can cost anything between £195 + VAT and £310 + VAT for a one-bedroomed flat.”
Mould is a type of fungus that spreads through spores. If allowed to thrive and colonize, it will be more difficult to remove. It can penetrate a property’s walls, floors and ceilings, down to its structure. It can even make the property uninhabitable, making it difficult to let or sell.
How Mould can cause Wealth Erosion and Disputes
If your property is part of a block of flats, mould could spread to other flats, too, and cause disputes with other property owners.
Zane explains how it forms: “In most instances, the combination of condensation and poor ventilation or poor insulation results in mould growth, which in turn is a major cause of dispute between a tenant and a landlord. Our members are trained to advise tenants at the time of check-in on how to keep the property ventilated and avoid deductions from their deposit when they leave. They are also trained to inform the landlord or his agent at check-out if they think the damage needs to be evaluated by an expert in the belief that parts of the property need maintenance.”
Simple steps that landlords can take to prevent mould growth involve ensuring that the heating works properly, that there are no leaks or blockages, chimneys are swept, the property is properly insulated, and window seals are replaced.
“As a Chairman of the AIIC, I heartedly recommend landlords and estate agents to engage independent inventory clerks for check-in and check-out reports, and take the clerks’ comments positively on board,” Zane urges. “This is because it is possible that landlords and agents may become too familiar with the property, to the point of overlooking or undermining certain areas.”
He adds: “Landlords may not always be pleased to hear what our members have to say, but they can find solace in the fact that it will be based on nothing else but unbiased, professional knowledge.”
